This study investigates whether firms' financial leverage affects earnings predictability. I posit and find that earnings predictability is negatively associated with firms' leverage. Further analyses using an instrumental variable and a difference-indifferences approach reveal a causal, adverse effect of financial leverage on earnings predictability. This effect is more salient for firms with higher default risk, higher cash effective tax rate volatility, and when economic policy uncertainty is higher. Taken together, my findings provide evidence on the causal effect of firms' leverage on earnings predictability through the riskiness channel. More importantly, by highlighting the role of firms' debt in influencing earnings predictability, my study contributes to our understanding of the relation between management decisions on debt contracting and earnings properties.